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061520041077 MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Special Call Meeting on Tuesday, June 15, 2004, at 10:00 a.m. in the Dunn Municipal Building. Present was Mayor J. Dal Snipes, Mayor Pro -Tern Donnie Olds, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Billy R. Godwin, Jr. and Joey Tart. Also present was City Manager Michael Uskiewicz, Assistant City Manager/Public Works Director Ronnie Autry, Human Resources /Safety Officer Moses Gallion, Recreation Director Perry Hudson, Fire Chief Austin Tew, City Attorney P. Tilghman Pope, and City Clerk Debra West. INVOCATION Mayor Snipes opened the meeting at 10:00 a.m. and asked Council Member Maness to give the invocation. �1 Afterwards, the pledge of allegiance was repeated. CONSENTITEM Budget Amendments — Council considered approval of budget amendments #53456 and #91492. Motion by Council Member Joey Tart, seconded by Mayor Pro -tern Olds to approve above consent item. Motion unanimously approved. A copy ofbudget amendments #53456 and #91 -#92 is incorporated into these minutes as Attachment #1. ITEMS FOR DECISION ADOPTION OF FY 04 -05 BUDGET The public hearing for the Fiscal Year 2004 -05 City of Dunn budget was held on June 3, 2004. Mayor Snipes yielded to City Manager Uskiewicz. Manager Uskiewicz stated that before the Council is the FY 2004 -05 budget ordinance. He thanked the Council for their deliberations held during the budget workshops. Mayor Pro -tern Olds and Mayor Snipes thanked the Manager and staff for the superb job they did in preparing the budget. Motion by Mayor Pro -tem Olds, seconded by Council Member Maness to adopt the Fiscal Year 2004 -05 , budget as presented. Motion unanimously approved. A copy of FY 04 -05 Budget Ordinance (02004 -18) is incorporated into these minutes as Attachment #2. INSURANCE RESOLUTION NOTE: Mayor Pro -tem Olds presided over the Council during the discussion and vote ofthis agenda item. Council is being asked to consider a resolution as it relates to approving the renewal of the City's workers' compensation insurance through Snipes Insumce. Attorney Pope discussed with the Council, that pursuant to N.C.G.S. 14 -234, if the City is going to do business with an elected official, it must do so in an,open,meeting by specific resolution. The City is proposing to renew the workers' compensation. cdverage throukh Snipes Insurance and the City Council must approve a resolution authorizing such action. The renewal is "effective on July 1, 2004, therefore the resolution will need to be approved to meet the ; deadline.. Motion by Council Member Joey Tart, seconded lty Council Member; Billy Tart to adopt the resolution authorizing the City of Dunn to renew the workers' compensation ooverage through Snipes Insurance. Motion unanimously approved. A copy of the,'iesoluiion (82004,14) authorizing the City of Dunn to renew worker's compensation through Snipes Insurance is incorporated into these minutes as Attachment #3. RESOLUTION APPROVING THE FINANCING INSTITUTION FOR HIGHWAY 421 WIDENING AND RECREATION CENTER PROJECTS Mayor Snipes yielded to City Manager Uskiewicz. Mr. Uskiewicz stated that the results of the bank bids have been received and based upon the resolution, a local bank, namely BB & T, came in as the low bidder for financing the Highway 421 Widening and Recreation Facility Projects. He asked that the Council authorize the resolution to allow the City to finance these projects through Branch Banking & Trust (BB &T) at a rate of 3.93% for widening Highway 421 and 4.17% for the Recreation Center. 1�\ Motion by Mayor Pro -tem Olds, seconded by Council Member Godwin to adopt the resolution approving the financing terms with BB & T for the Highway 421 Widening and Recreation Center projects. Motion unanimous approved. A copy of the Resolution (82004 -15) approving the financing terms with BB & T for the Highway 421 Widening and Recreation Facility Projects is incorporated into these minutes as Attachment #4. 1078 CAPITAL PROJECT ORDINANCE/BUDGET RURAL CENTER GRANT A Capital Project Ordinance related to the Eastside Forcemain and Juniper Creek Outfall (Rural Center Grant) has been submitted to the council for approval. This ordinance needs council approval so that the budget for this project can be established for accounting purposes. This project ordinance will take the place of an annual budget ordinance, because it is not part of the City's recurring operations and expenditures, and will continue for the life of the project. Motion by Council Member Galbreath, seconded by Council Member Billy Tart to approve the Capital Project Ordinance for the Rural Center Grant, including the Eastside Forcemain and Juniper Creek Outfall improvements. Motion unanimously approved. A copy ofthis Capital Project Ordinance (02004 -19) for i the Rural Center Grant is incorporated into these minutes as Attachment #5. HARNETT PRIMARY LEASE REVISIONS Mayor Snipes reminded the Council that the committee consisting of the Mayor, Manager and City Attorney negotiated the lease, primarily the price, with Hope Ministries; however, they had no authority to amend the lease. On the Hope Ministries lease, there are two (2) modifications to the lease that have been requested. 1" Modification - In the present lease, under item 10 (Services and Utilities), the City provided that they will establish a separate electric meter for the Senior Center, separating it from the cafeteria building that is being leased to Hope Ministries. It has been determined that this would cost the City $20,000, therefore, the City is not going to do this. The City Manager has proposed that the City and Hope Ministries continue dividing the power bill for that particular meter through a formula based on usage, which has been used during the previous (5) years of the lease. Discussion was held with Mr. Snead of Hope Ministries and Recreation Director Perry Hudson concerning how electricity is furnished to different portions of the building (by one meter or separate meters). Also they discussed how to determine the amount of electricity being used by the different divisions of the building. Discussion was held with regard to the prices quoted to Mr. Autry and to Mr. Snead by different electricians to establish a separate meter for Hope Ministries. Mayor Snipes suggested that he along with Manager Uskiewicz and Assistant Manager/Public Works Director Ronnie Autry meet with Mr. Snead to walk through the building and report back to the Council on this issue. He added that the Manager has stated that the City is being metered for the (2) rooms in question. Council agreed with the suggestion made by Mayor Snipes. 2 "d Modification — Under Item 6 in the lease (Repairs and Maintenance), Hope has requested that the City be responsible for the roof and boiler on the leased premises. Discussion was held about the concerns expressed by Mr. Snead with regard to maintaining the roof and boiler. Mr. Snead has asked that the City maintain the roof and boiler and he will maintain the electrical and plumbing. Mr. Snead requested that the Council revisit this issue since the City is now receiving revenue from him for this property. He stated that this is an old building and he has brought the property up to code. He added that during the last five (5) years while leasing the building from the City for $1.00 per year, he assumed the responsibility to maintain the roof and boiler. Discussion was held about determining where the responsibility belongs, to the tenant or to the City, with regard to maintaining the roof and boiler. Motion by Council Member Galbreath, seconded by Mayor Pro -tem Olds to approve the 2 " lease modification whereby Hope has requested that the City be responsible for the repairs of the roof and the boiler on the leased premises. Motion by Mayor Pro -tem Olds, seconded by Council Member Galbreath to amend the previous motion, to approve an amendment to the Sublease Agreement between the City and Hope, whereby the City would be responsible for repairs and maintenance to the roof of the building and that responsibility for the boiler would remain with Hope. Motion to Amend the Previous Motion carried 4 -2. AYES NOES Olds Maness Galbreath Billy Tart Joey Tart Godwin 1079 City Attorney Pope explained that there is a motion as amended on the floor for further discussion and/or vote. He added that the original motion is gone. He explained that the motion as amended would retain responsibility for the boiler with the lessee and would transfer repair and maintenance responsibility for the roof to the City of Dunn by way of a sublease amendment. Council discussed their concerns with modifying the lease at this time. They also discussed the major responsibility that the City would be taking on should this lease be modified. Council Member Maness called for the previous question. Mayor Snipes called for the vote for all those members in favor of the motion as amended. Motion defeated 4 -3. AYES NOES Olds Maness Galbreath Godwin Joey Tart Billy Tart Mayor Snipes Mayor Snipes stated that the City would like more time to look at the electric, roof and boiler situation ITEMS FOR DISCUSSION AMENDMENT ONE BALLOT ISSUE Mayor Snipes yielded to Manager Uskiewicz to explain this issue. Mr. Uskiewicz stated that this issue was a topic discussed during Town Hall Day last week. He explained that municipalities are being asked to show support for this amendment. He further stated that Amendment One is another funding mechanism that helps the municipalities develop properties and to create business and government partnerships. This is a constitutional amendment to permit self - financing bonds and will be on the November 2004 ballot. Self - financing bonds are used to pay for public improvements (such as street, water and sewer service, and sidewalks) in partnership with private investment within a designated development district. The additional tax revenues from the increased property values within these districts are used to pay for the bonds. Mr. Uskiewicz suggested that a resolution in support to Amendment One be brought back before the Council at the July Council meeting. Council concurred. ACCEPTING ROADWAY HARNETT CROSSINGS Mayor Snipes yielded to City Manager Uskiewicz to explain this request. Mr. Uskiewicz stated that the City has been contacted by Central Carolina Bank (CCB) with regard to accepting a roadway that was constructed at the far end of Harnett Crossings Shopping Center. He added that this street was built to DOT (Department of Transportation) standards. Mr. Uskiewicz asked for direction from the Council with regard to this request. Mayor Pro -tem Olds asked if the City accepts this street, will it be the responsibility of the City to maintain this roadway. Mr. Uskiewicz responded yes. Mr. Uskiewicz explained that this street connected Highway 421 to Powell Avenue. He added that the City would be willing to modify the roadway should certain developments occur. The Council questioned the reasons why someone would want to donate this road to the City. Manager Uskiewicz responded for maintenance reasons. He added that he is just addressing this concern for a business owner and would like some type of resolution, whether to move forward and accept the roadway or let it remain private property. Assistant City Manager/Public Works Director Ronnie Autry stepped forward. He gave a history of how this road was built. He explained that the state required this road to extend from Highway 421 to Powell Avenue. He stated that the old thoroughfare plan went through this property at the time it was built. The shopping center does not own this street. Dr. Sorrell owns this road. Mr. Autry spoke with Dr. Sorrell and he is in favor of releasing this street to the City. He added that a number of years ago, there was a proposal for development in the area now occupied by a produce stand. Council discussed other streets within development areas and whether or not they are private or City maintained. They asked Mr. Autry what makes this roadway different from any other roadway and why would the City accept it and not others. Mr. Autry explained that the difference is that the state required that a right -of -way be put in place when this road was built, extending from Highway 421 to Powell Avenue. He stated that the original old thoroughfare plan cut through the middle of the property. Mr. o wl] Autry added that this road is not part of the shopping center development, but is on private property owned by Dr. Sorrell. Further discussion was held about the liability and asset of accepting this road, and the cost for patching or resurfacing this road. This road was designed in 1984. The Council requested that Mr. Autry bring back to the July Council meeting, an estimate to repair, resurface and/or patch this road. With no further business to discuss, the meeting was adjourned at 11:04 a.m. Attest: Debra G. West City Clerk , ��rrrurah q �%.%` CITY .......... OG't GORPOA? 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